What is Asset Refinance and How Does It Work For Businesses?

Published on 21 October 2026

What is Asset Refinance?

Asset refinance is a funding arrangement where a business borrows money against the value of an asset it already owns, rather than purchasing a new one. The lender assesses the asset’s current value and advances a percentage of that value as a lump sum, which the business repays over an agreed term.

Asset Finance	Asset Refinance (Leasing)
Provides funding to access a new asset	Unlocks cash from an asset you already own
The asset itself is the reason for the funding	No new equipment is purchased

How does Asset Refinance Work?

1. Asset Evaluation – The Broker or Lender will check the details of asset including the age, value, condition, how much of the asset you own and any money outstanding in the existing asset finance agreement.
2. The Lender then provides you with an evaluation figure they can provide for the asset. Once accepted the lender the supples a cash loan into your chosen account.
3. You continue using the asset in day-today operations
4. You make regular, fixed payments to the lender until the loan is cleared and ownership is transferred back to you.
   
   

What qualifies for Asset Refinance?

• Commercial vehicles (vans, trucks, fleet vehicles)
• Manufacturing or production machinery
• Construction and plant equipment
• Agricultural equipment
• Specialist or industry-specific equipment
  
  

Why do businesses use Asset Refinance?

• Freeing up working capital
  Access equity locked in equipment into usable cash without disrupting operations.
• Bridging cash flow gaps
  Helps season businesses or those with slow-paying clients cover short-term shortfalls,
• Funding growth
  Provides capital for hiring, expansion, or new projects without giving up business equity.
• Consolidating debt
  Can combine multiple smaller debts into a single, more manageable repayment.
• Avoiding a full asset sale
  Businesses raise cash without permanently losing the equipment they need to operate.
  
  

Is Asset Refinance Ideal For Your Business?

• Do you own equipment, vehicles, or machinery with significant resale value?
• Do you need cashflow without giving up business equity?
• Can you commit to fixed repayments over the loan term?
• Would you rather retain and keep using your asset than sell it outright?
  
  

Need Help Finding A Refinance Company To Support You?

Asset Refinance is a flexible option worth considering alongside traditional loans and asset finance, particularly for businesses that are asset-rich but need working capital to manage cash flow of fund growth.

Crown Business Finance has supported their clients with £226K in Asset Refinance facilities since their inception in 2019.

With a team of over 30 dedicated staff and a panel of over 200 lenders, Crown Business Finance are well equipped to handle your asset refinance from initial query through to cash paid into your account.

You can contact the team on 01908 039818, emailing info@crownbusinessfiannce.co.uk or by completing our intelligent online form that takes just 2 minutes.

Frequently asked questions

Is Asset Refinance the same as a loan?

It functions like a loan, but it’s specifically secured against an asset that business already owns, rather than being unsecured or tied to a new purchase.

How much can I borrow against an asset?

Most lenders offer between 60% and 90% of the asset’s current market value, depending on the asset type, it’s condition and the lender’s policies.

What happens if I miss a payment?

As with any secured lending, missed repayments can put the asset at risk of repossession, so it’s important to confirm the business can comfortable meet the repayment schedule before proceeding.

Can I refinance an asset that is still being paid off?

Yes, this is often called refinancing existing finance. When appropriate a new lender pays off the remaining balance and takes over ownership of the asset as security.

Is Asset Refinance ideal for small businesses?

It’s often more accessible than unsecured lending for small businesses, since the asset itself reduces the lender’s risk, which can mean easier approval even with limited trading history.